Long Leaf Partners Fund's Comment on Regeneron (REGN)

Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” third-quarter 2025 investor letter. The letter can be downloaded here. The fund returned -0.33% in the third quarter, compared to the S&P 500’s 8.12 % return and the Russell 1000 Value’s 5.33% return. The firm is not happy with the flat performance of the portfolio, emphasizing its investments in real assets and brands that generate growing free cash flow (FCF) per share. Despite facing market pressures from speculation and government uncertainty, it anticipates that the Fund's ~10x FCF multiple could rise to the mid-teens as management implements strategies to improve margins and increase share repurchases. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Longleaf Partners Fund highlighted stocks such as Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN). Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a biopharmaceutical company that discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases. The one-month return of Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) was 3.19%, and its shares lost 37.64% of their value over the last 52 weeks. On October 23, 2025, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) stock closed at $575.69 per share, with a market capitalization of $61.316 billion.

Longleaf Partners Fund stated the following regarding Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) in its third quarter 2025 investor letter:

"After a slow start to our holding period this year, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) has found its footing and grown its value per share back to above where we started the year in our opinion. We still do not have to pay anything for multiple high quality pipeline candidates, and the company has become one of our larger share repurchasers with its net cash balance sheet."

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 73 hedge fund portfolios held Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) at the end of the second quarter, up from 66 in the previous quarter. In the second quarter of 2025, Regeneron Pharmaceuticals, Inc.’s (NASDAQ:REGN) total revenues reached $3.7 billion, which represents a 4% growth compared to the previous year. While we acknowledge the potential of Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) and shared Baird Chautauqua International and Global Growth Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.